Financial derivatives

In general, financial instruments that are linked to – a specific other financial instrument, – a specific indicator or – a specific commodity and – whose purpose is to trade financial risks on financial markets (a financial instrument, the price of which is directly dependent upon of one or more underlying securities, equity indices, commodities, other derivative instruments, or any agreed upon pricing index or arrangement. Derivatives are used to hedge risk, by transferring it to those willing to assume it). The most common financial derivatives are options, futures, swaps, credit derivatives and forward exchange contracts.- See derivatives, derivative transactions, toxic instruments, reporting requirements, financial capital, financial instruments fact sheets, capital account. – See ECB Monthly Bulletin, July 2002, p. 71; ECB Monthly Bulletin, February 2012, p. 122 f. (financial derivatives in the financial account).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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